Average of Auto Insurance Cost For October 2023 

In October 2023, auto insurance cost remains a critical consideration for drivers. Understanding the average insurance costs and the factors affecting them is essential for informed decision-making.

Key Takeaways

  • Full coverage car auto insurance costs about $2,014 yearly while minimum coverage is around $622 per year.
  • Monthly, full coverage averages $168, while minimum coverage is about $52.
  • Geico, Erie, and USAA offer affordable full coverage insurance, but not for everyone.
  • Auto-Owners, Geico, and USAA provide cheap minimum coverage insurance on average.
  • Usually, men pay more for car auto insurance, but not 50-year-old drivers; women pay slightly more.
  • Some cars have higher insurance costs due to factors like price, safety features, and repair expenses.
  • For instance, Tesla Model 3 insurance is 60% higher than Subaru Outback’s.

How much does car auto insurance cost by state?

Car auto insurance typically costs about $2,014 yearly for full coverage and $622 yearly for minimum coverage. However, the specific cost depends on where you live, as factors like accident rates, claim frequency, and local labor and parts costs affect premiums.

How much does car auto insurance cost by state?

Average car auto insurance cost by state in 2023

StateAvg. annual full coverage premiumAvg. annual min. coverage premium
Alabama$1,843$441
Alaska$1,946$421
Arizona$1,810$587
Arkansas$1,907$443
California$2,291$636
Colorado$2,121$500
Connecticut$1,533$620
Delaware$2,103$801

What are the cheapest states for car auto insurance?

Maine, Vermont, Idaho, New Hampshire, and Massachusetts have the lowest annual full coverage car auto insurance rates in the nation, averaging:

  • Maine: $941 per year (53% below the national average)
  • Vermont: $1,061 per year (47% below the national average)
  • Idaho: $1,133 per year (44% below the national average)
  • New Hampshire: $1,162 per year (42% below the national average)
  • Massachusetts: $1,262 per year (37% below the national average)

What are the most expensive states for car auto insurance?

Our research shows that drivers in Florida, New York, Louisiana, Nevada, and Michigan face the highest annual costs for full coverage car auto insurance. This is likely due to frequent claims for common losses in these states, making insurance riskier overall.

  • Florida: $3,183 per year (58% above the national average)
  • New York: $3,139 per year (56% above the national average)
  • Louisiana: $2,909 per year (44% above the national average)
  • Nevada: $2,779 per year (38% above the national average)
  • Michigan: $2,691 per year (34% above the national average)

How much does car insurance cost by company?

On average, top insurance companies offer full coverage car insurance ranging from $1,300 to $2,600 yearly, with Geico and Erie being the most affordable. However, your personal cost can vary because each company uses its unique assessment system. Remember that the coverage you select also affects the cost. Typically, full coverage is about 224% more expensive than minimum coverage.

How much does car insurance cost by company?

The table displays the yearly and monthly costs of full coverage insurance from major national insurance companies.

Insurance companyAnnual full coverage premiumMonthly full coverage premium
Allstate$2,630$219
American Family$1,700$142
Amica$1,467$122
Auto-Owners$1,361$113
Erie$1,356$113
Farmers$1,598$133
Geico$1,353$113
Mercury$1,547$129

See all 

How much does car auto insurance cost by age?

car auto insurance companies consider multiple factors when calculating your premium, and in most states, your age is a significant factor. Younger and older drivers statistically have a higher risk of accidents due to inexperience or slower reactions, so they typically pay more for car auto insurance.

The table below shows the average insurance costs for different age groups. It’s important to note that in Hawaii, age doesn’t affect your premium because state laws prohibit it. Massachusetts also doesn’t use age but considers the number of years of driving experience, which often relates to age, leading to varying rates among age groups.

AgeAnnual full coverage premiumAnnual min coverage premium
20-year-old$4,319$1,322
25-year-old$2,473$747
30-year-old$2,125$647
40-year-old$2,014$622
50-year-old$1,881$589
60-year-old$1,824$578
70-year-old$1,986$652

Car auto insurance costs for young drivers

Young drivers are statistically more likely to have car accidents, and these accidents are often more severe. The fatal crash rate for 16- to 19-year-olds is nearly three times higher than for those 20 and older. Because young drivers pose a higher risk, car auto insurance companies charge them higher premiums to cover potential payouts.

In the tables below, you’ll see the above-average premiums that young drivers typically pay due to their lack of experience. You might notice that 18-year-olds pay more for car auto insurance than 16-year-olds. This is because we’ve assessed 18-year-olds as if they had their own policy, unlike 16- and 17-year-olds who are often listed on their parents’ policy.

It’s worth noting that many car auto insurance companies offer discounts to young drivers who complete driving training and telematics programs. These programs can help reduce premiums while promoting safe driving habits in young drivers.

AgeAnnual full coverage premiumAnnual min coverage premium
16-year-old$4,392$1,470
17-year-old$4,102$1,362
18-year-old$6,110$1,967
19-year-old$4,720$1,472
20-year-old$4,319$1,322
21-year-old$3,420$1,042
22-year-old$3,163$955
23-year-old$2,929$921
24-year-old$2,837$850

*The rates for 16- and 17-year-olds show the complete cost of adding the teen driver to their parent’s policy, including student discounts. 

**The rates for 18- to 25-year-olds represent renters (not homeowners) calculated on their separate policy.

How does gender impact the cost of car auto insurance? 

Gender plays a role in your insurance premium in most states, with men typically having higher costs than women. This is because men often engage in riskier driving behaviors and have more severe accidents, as reported by the Insurance Information Institute (Triple-I). However, some states like California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania do not consider gender when setting insurance rates due to state regulations.

How does gender impact the cost of car auto insurance? 

The table below illustrates the difference in premiums for men and women across various ages. You’ll notice that the price gap between genders becomes narrower as people get older but starts to widen again in senior years. It’s also interesting to note that 50-year-old women tend to pay slightly higher premiums than men of the same age.

AgeMaleFemaleDifferencePercent difference between rates
20-year-old$4,638$3,999$63914.8%
25-year-old$2,552$2,393$1596.4%
30-year-old$2,142$2,108$341.6%
40-year-old$2,020$2,008$120.6%
50-year-old$1,885$1,877$20.1%
60-year-old$1,832$1,816$150.9%
70-year-old$2,001$1,972$291.5%

How does driving record impact the cost of car auto insurance?

Drivers who have caused accidents and have them on their record typically pay about 42% more for car auto insurance compared to those with clean records. For drivers with a DUI conviction, the average increase is even higher, at 93%. This highlights how the seriousness of an incident and being classified as a high-risk driver can affect your premium.

  • Speeding Ticket: Getting a speeding ticket is a common driving violation that, on average, raises full coverage premiums by 21%. Each car auto insurance company has its own way of calculating rates after a speeding ticket. For instance, even after a speeding ticket, both Erie and Auto-Owner’s average car auto insurance rates are more than $400 lower than the national average.
  • At-Fault Accident: Having an at-fault accident on your record can increase your monthly full coverage car auto insurance cost from $168 to $238, and raise your annual premium by 42%. If it’s your first accident and you have optional coverage like accident forgiveness, you may avoid the surcharge.
  • DUI Conviction: A DUI conviction can raise your monthly full coverage premium to over $300 and remain on your record for a decade or more. The surcharge amount varies by state. For example, the average cost of car auto insurance after a DUI for full coverage is $3,797 per year in Kentucky but around $5,604 per year in Louisiana.
Driving recordAvg. monthly cost*Avg. annual cost*Increase above national avg.
Clean driving record$168$2,014$0
Speeding ticket$202$2,427+ $413
At-fault accident$238$2,854+ $840
DUI conviction$325$3,091+ $1,887

How much does car auto insurance cost average by vehicle type?

The car you drive significantly affects your insurance premium. Factors like the vehicle’s price, parts availability, labor costs, accident likelihood, and safety features all impact your coverage cost. The table below includes vehicle makes and models suitable for different lifestyles and budgets.

Insurance companies often consider certain vehicle makes and models more expensive to insure due to shared characteristics, including:

  • High-end vehicles, like luxury or sports cars: These cars often come with expensive parts and repair costs, as well as higher speed capabilities, which increase the risk of accidents.
  • SUVs, vans, and large vehicles: Their greater weight and passenger capacity can lead to more damage in accidents compared to smaller vehicles.
  • Common, affordable vehicles: Economy cars may be budget-friendly, but they may lack security measures, making them more susceptible to theft and vandalism, leading to more comprehensive claims.
  • Hybrid and electric vehicles: While they save on fuel, these vehicles can be more costly to insure due to expensive parts and labor.
  • Vehicles with high safety ratings: Cars with excellent safety features often have lower base insurance rates, and some features may qualify you for additional discounts, depending on your insurance provider.
Vehicle typeAvg. monthly cost*Avg. annual cost*
BMW 330i$209$2,513
Ford F-150$143$1,753
Honda Odyssey$145$1,735
Toyota Prius$176$2,117
Tesla Model 3$215$2,577
Audi Q5$188$1.869
Toyota RAV4$156$1,603
Subaru Outback$134$1,820
Jeep Wrangler$152$2,743
Ford Mustang$207$2,488

*rates are for full coverage

3+ Factors affect my car auto insurance price

Apart from state requirements, your auto insurance premium is influenced by various common factors. These factors help insurers assess your risk and determine the cost of your coverage.

  • Coverage Choices: Your insurance options, like liability limits, deductibles, and additional coverage like comprehensive and collision, affect your rates. Choosing higher limits and lower deductibles usually means higher premiums.
  • Insurance History: Maintaining continuous coverage since you became a licensed driver can result in lower rates. Gaps in coverage, unless you didn’t own a car during that time, may signal higher risk and raise your premium.
  • Annual Mileage: More driving increases accident risk. Drivers who cover fewer miles each year, usually under 7,500 miles, often qualify for lower rates, but this threshold can vary by insurer.
  • Number of Insured Drivers: Having multiple drivers on one policy can lead to lower rates. Married couples, for instance, typically pay 6% less than the national average for full coverage and 4% less for minimum coverage, according to Quadrant Information Services.

FAQs: Car insurance cost average

What’s the difference between minimum and full coverage?

Most states require minimum car auto insurance, covering bodily injury and property damage. Some may mandate personal injury protection or uninsured motorist coverage. While cheaper, minimum coverage provides limited financial protection.

Insurance experts often recommend full coverage, which typically includes higher liability limits, collision, and comprehensive coverage. This may be needed if your vehicle is leased or financed. You can also add medical payments, towing, and rental reimbursement for extra protection, though it may increase costs. Full coverage offers more financial security in various claim situations.

What limits should my car auto insurance policy have?

You should aim for liability limits that balance affordability and ample financial protection, but this varies for each person. If you own an expensive or flashy car, like a luxury vehicle, consider higher liability limits like 100/300/50 for better financial security compared to state minimums. People with property, stocks, or businesses might explore extra coverage through an umbrella policy.

Remember, it’s not just about your current assets but your potential future earnings. Even college students with part-time jobs have substantial earning potential that could be at risk in an at-fault accident with insufficient liability coverage, leading to wage garnishment. Discuss your ideal limits with your insurance agent to find the right fit for your situation.

Does your car auto insurance go down after your car is paid off?

Paying off your car loan is a significant moment, but it doesn’t impact your car auto insurance rates. However, it does give you more freedom to choose your coverage. Typically, lenders require comprehensive and collision insurance for financed vehicles and may limit your deductible. When you own your car outright, you decide whether to keep these coverages.

While it might seem tempting to drop comprehensive and collision for a cheaper liability-only policy, insurance experts often advise keeping full coverage if you can afford it. These coverages can save you from substantial out-of-pocket expenses in case your vehicle is damaged in an accident or another covered event.

Does car auto insurance decrease every year?

car auto insurance rates can change at each renewal due to various factors beyond your control. These fluctuations are tied to the shared risk in insurance, influenced by factors like rising vehicle repair and medical costs. Sometimes, rates may increase due to substantial losses from catastrophic events, but they can also decrease if claims are lower than expected, often linked to better weather or improved local driving habits. 

While rates don’t always go down each year, they may decrease for certain groups like 16- to 17-year-old drivers as they gain experience or for those with surcharges on their policies, which typically decrease over three years until the surcharge is removed.

How can I get cheaper car auto insurance?

Saving on car auto insurance can begin before buying a car. Compare quotes for different car makes and models to see which ones offer lower premiums. For existing vehicles, look for discounts and telematics programs. Review your policy to ensure you need all coverage types, and consider dropping ones you don’t. If you have multiple cars, you might not need rental reimbursement coverage. Maintaining a clean driving record and improving your credit score, where applicable, can also lower your premium in the long run.

In Conclusion

The average cost of auto insurance in the United States typically ranges from $1,300 to $2,600 per year for full coverage, with Geico and Erie offering some of the cheapest rates, but individual premiums vary widely based on factors such as location, age, driving history, and coverage selections.

Methodology

Bankrate uses Quadrant Information Services to analyze 2023 insurance rates across all 50 states and Washington, D.C. They consider population density in each region. The rates are based on a 40-year-old male and female driver with clean records, good credit, and specific coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

For minimum coverage, Bankrate used the requirements of each state. Their drivers own a 2021 Toyota Camry, commute five days a week, and drive 12,000 miles annually.

Please note these are sample rates for comparison only.

  • Credit-Based Scores: Rates are based on insurance credit tiers – “poor, average, good (base), and excellent.” These tiers consider credit scores but aren’t solely dependent on them. Some states (California, Hawaii, Massachusetts, and Michigan) limit or prohibit using credit for rating auto insurance rates.
  • Incidents: Rates were calculated with various incidents applied to the base profile, including a clean record, at-fault accident, single speeding ticket, single DUI conviction, and lapses in coverage.
  • Vehicle Model: To determine vehicle-related costs, Bankrate used different vehicle models (BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius, and Toyota Camry) with various years (2016, 2017, 2018, 2019, and 2021) in their calculations.
  • Age: Rates were determined for ages 18-60, with the base profile being 40 years old. Depending on age, drivers may be renters or homeowners. Age isn’t a rating factor in Hawaii and Massachusetts due to state regulations.
  • Gender: Some states (California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania) don’t use gender as a factor in premium calculations.
  • Teens: Rates for teens are calculated by adding a 16- or 17-year-old to their parents’ policy, and the displayed rates show the total cost of adding a driver this age to their parents’ policy.

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